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P a n a s i a L o g i s t i c s s i n g a P o R E P t E Lt D Pan Asia Logistics is dedicated to expanding their global logistics network
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Logistical Pan asia logistics is aiming to become the preferred partner in asia for global logistics
Writer Matt Bone Project Manager James Mitchell
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Leviathans
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ince late 2002, Pan Asia Logistics (PAL) has merged equally high levels of German efficiency with Asian commitment to deliver unparalleled standards of logistical services to their customers from offices across key cities in Asia. Supported by over 1,000 logistics professionals who place the company’s core values of knowledge-driven, integrity, personal relationships and service excellence above everything else, Pan Asia Logistics has become one of the fastest growing logistics companies in the Asia Pacific region. Christian Bischoff, CEO of Pan Asia Logistics, was faced with tough challenges when the breakout of Avian Flu occurred so quickly after the company began operating: “We started operating in 2003 with just six people and were really excited at what the future held for us, but no sooner than we had started, Avian Flu ran riot in Asia and spiralled the economy into a deep crisis. We suddenly faced the challenge to grow from zero, while the whole market in Asia crashed around us.” Thankfully, Pan Asia Logistics managed to retain and even bring in an impressive number of customers despite the epidemic, and saw a better than expected turnover of SG$20 million in the first year. By the end of 2003, the company employed 80 people and had opened new offices in South Korea and offices in Hong Kong; even beginning their operations in Indonesia. “Reflecting back on our amazing journey, it proved to be true that the best opportunities for greater things do often come from crisis or periods of hardship,” cites Bischoff.
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Christian Bischoff, CEO - Pan Asia Logistics
Reflecting back on our amazing journey, it proved to be true that the best opportunities for greater things do often come from crisis or periods of hardship”
Mercedes Parts Distribution Centre - Korea
MTU Committed to Singapore, Strong in Asia; MTU Accelerates Development in the Region
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TU, part of Rolls-Royce Power Systems, is one of the world’s leading manufacturers of large diesel engines and complete propulsion systems. An extensive product portfolio covering diesel engines and complete propulsion systems has been delivering power to ships,heavy agricultural, rail and military vehicles, and the oil and gas industry for over 100 years. As Asia Pacific headquarters for all MTU and MTU Onsite Energy products and services in the region, MTU Asia offers sales and application engineering, service support, distribution management, corporate functions, marketing and communications. Strategically located in Singapore, MTU Asia is the hub for sales and support of MTU products throughout the region. MTU’s presence in over 30 countries in Asia Pacific bears witness to the strength of the organization and its network. Making use of a wide network of subsidiaries, MTU has achieved tremendous growth throughout Indonesia, India, mainland China, Hong Kong, Vietnam,Japan and Korea. In November 2013, to keep up with the company’s expanding presence in Asia, MTU broke ground on a new Asia Pacific regional headquarters in Singapore.
As business in the region has grown, so has the demand for service support, including the growing need for engine parts. In response, and in long term partnership with Pan Asia Logistics, MTU has invested in and opened a state-of-the-art Parts Logistics Centre in Singapore for the management and storage of parts. The new facility, covering 10,000 square metres, is capable of handling a daily throughput of 1,000 line items and 50 to 60 orders per day. Being close to its customers is at the heart of MTU’s commitment to world-class operational excellence. In the Asia Parts Logistics Centre – one of the three worldwide – MTU has a state-of-the-art facility to meet its customers’ needs. Because MTU expects to see higher throughput both inbound and outbound, high efficiency warehouse processes and storage systems are key for long term success in the region. Utilizing an advanced Extended Warehouse Management (EWM) system and an Automated Storage and Retrieval System (ASRS), MTU’s Parts Logistics Centre in Singapore means MTU Asia is now more than ever well equipped to serve the growing business in Singapore and throughout the Asia Pacific region.
www.mtu-online.com
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Riege Software International SOFTWARE SUPPORTS PAN ASIA LOGISTICS EXPANSION
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iege Software International has implemented “Scope” at Pan Asia Logistics, one of the fastest growing logistics solutions providers in Asia Pacific. Scope has been implemented in China, Hong Kong, Singapore, Malaysia, Thailand, Vietnam, Japan, Taiwan, India and Indonesia, as well as in Germany. “It was an outstanding achievement by this joint team. Pan Asia Logistics was a pilot customer for Scope in the Asian market, and of course we had to take account of certain features specific to the company and to each country,” says Dr. Tobias Riege who directed the rollout. Currently the rollout of Korea is planned including electronic interfaces to fulfill the complex local requirements. Italy is scheduled for January 2015.
Meeting Customer Needs
make commitments instantaneously. After 2003, PAL began to expand into “We pride ourselves on always the market further, gaining contracts delivering on our promises. No fuss and no theatrics, just our with global companies such as Renault and Ericsson. Although still a honest commitment to the logistics business,” cites Bischoff. fledgling company, PAL was blessed Pan Asia Logistics still view with a plethora of experience from themselves as a small company but its employees, all of whom had have clear and ambitious goals set come from a logistics background in place. “Many people consider and enabled the company to quickly logistics as a sunset industry, but build up trust between themselves worldwide trade wouldn’t be and the clients. Pan Asia Logistics possible without the unsung hero ensure that no matter who the called logistics,” Bischoff further client is or what the logistical explains: “The global logistics nature of the contract, their level market is worth over a trillion US of commitment, delivery speed and flexibility never waivers. Through this dollars annually and the growth indomitable spirit, PAL now manages forecasts for Asia are encouraging. We are targeting SG$1 billion revenue 25 companies in Asia and Europe by 2020.” with more than 50 branches and boasts a turnover of SG$200 million. Developing the Business With Pan Asia Logistics being self owned and operated, the company Pan Asia Logistics has heavily can make quick decisions, negotiate invested in additional warehousing business contracts and in some cases across Asia over the last few years,
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Scope covers the entire international transport process chain, from the collection of the goods from the sender through to final delivery to the end recipient. It also offers connections to major air freight carriers, shipping companies and other transport providers to register deliveries automatically, track their status and monitor them. Invoice data is transmitted to the logistics provider’s accounting system via an interface. In addition to the modern and intuitive user interface, Scope supports Asian languages. Pan Asia Logistics uses Riege’s transport management system in the form of SaaS (Software as a Service). The software is located centrally in the Riege data center in Hong Kong, one of three Riege data centers world wide. The outsourcing produces savings in hardware, maintenance and staff costs, while increasing the security and quality at Pan Asia Logistics. Tel +852 2801 7623 Email info.hk@riege.com
www.riege.com
“Given our rapid growth and work across national borders and continents, we need a transport management system that is extremely effective and efficient.� Christian Bischoff, Founder and Managing Director at Pan Asia Logistics
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OKH Global Ltd Joint Synergies to Create Logistic Hubs Around the World
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n 18 August 2014, SGX-listed OKH Global Ltd. (“OKH Global”), an integrated property developer, announced the proposed investment to acquire a 15% stake in Pan Asia Logistics Holdings Singapore Pte. Ltd.
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including 438,000 square foot warehouse in South Malaysia, which was bought and paid for by the company and opened in March of this year, and a SG$60 million, 220,000 sq ft warehouse, just outside of Seoul, South Korea. Additionally, in late August 2014, the company held the grand opening of their 450,000sq ft building in Singapore west, costing SG$95 million. The expansion is not just limited to Asia, with Pan Asia Logistics opening up a new office in Frankfurt, Germany. The company also have warehouses and offices in Italy - notably in Milan and Rome - thanks to a buyout of a smaller logistics firm in 2013. Right now, PAL is preparing a move into Myanmar and is looking at a joint venture in Bangladesh in order to increase their coverage and reach across Asia. “We are strategically examining the region in order to decide where to build our warehouses,
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We are strategically examining the region in order to decide where to build our warehouses, which is based on a multitude of factors”
As an integrated property developer, OKH Global has the capability and financial resources to design and develop logistics and warehousing properties specifically for the growing client base and expanding business services of Pan Asia. Both OKH Global and Pan Asia can capitalise on their inherent strengths and complementary business networks to create new value propositions to customers. This proposed investment will further reinforce the working relationship of both companies, which was started from a joint venture to develop, own and manage logistic properties across Asia. While this joint venture currently owns three logistics properties, of approximately 1.1 million square feet in total, located in Singapore, Malaysia and Korea, there are plans to progressively expand the logistics property assets and network around the world. The collective experience and resources of both companies will create a cohesive platform to deliver interlinked business opportunities and create new value propositions in complementary markets. Tel +65 6345 0544 Email admin@okh.com.sg www.okh.com.sg
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which is based on a multitude of factors. We do this by carefully looking at the options through feasibility studies and research,� remarks Bischoff. one such country that has really been targeted by PAL is China, where they currently have 10 offices spread across the country, with a view to adding an additional 10 more offices in 2015. In a country the size of china, logistics is a key industry and logistics services are the backbone of many industries. Pan asia logistics plans to be that very backbone. to aid them in their goal of becoming not only Asia’s biggest logistics service provider, they have partnered up with okH global, the singapore-based property developer with integrated design-and-build capabilities. This joint venture will provide PAL with the latest in technological advances in architecture and design knowhow, to ensure the new warehouses and buildings being created by Pal are at the cutting edge of design and functionality. The secondary benefit of a joint venture with OKH is that it enables both companies to use the agreement as a platform to build a strong client base in asia and internationally.
IO-CONSULTANTS PTE LTD
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o-consultants Pte ltd, set up in October 1996, is an independent consulting and planning company, specialising in functional industrial planning, process optimisation and facilities design. io-consultants Pte ltd, based in singapore, serves as the regional headquarter of io-consultants gmbH & co. kg, located in Heidelberg (germany). together, io-consultants have successfully completed more than 5,000 projects and assignments in Europe, the Middle East and the United States and more than 50 projects in the Asia-Pacific region. io-consultants specialises in process re-engineering, material flow and information systems related to processes in various industrial sectors. these include food & catering, pharmaceutical, healthcare and logistics. in recent years, io-consultants have also moved into design for the hospitality industry. io-consultants’ highly qualified workforce, with more than 50 years in germany and 18 years in asia, of both specialised and inter-disciplinary experience behind them, helps clients to improve their competitive position. our substantial knowledge and experience enables us to provide integrated planning services for complex and large-scale projects.
io-consultants Pte. ltd. 25 intl. Business Park #03-20/21 German Centre, Singapore, 609916 www.io-consultants.com
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io-consultants develops solutions tailored to the customers‘ specific needs, aimed at increasing customer productivity to subsequently reduce costs and enhance competitiveness on a sustainable basis. Whether greenfield projects or strategies for optimising the value-added chain, io-consultants applies innovation, efficiency, reliability, quality consciousness and the “made in Germany“ hallmark to secure the success of its clients both home and abroad. io-consultants Pte. Ltd. 25 Intl. Business Park #03-20/21 German Centre, Singapore, 609916 www.io-consultants.com
CREATEFUTURE Meeting Expansion Needs With expansion and company growth comes the inevitable problem of being able to source top manpower and talent to help propel the company forward at a steady pace. This has been one of the standout challenges faced by Pan Asia Logistics in recent years and the company has been looking at new ways to bring in raw talent and turn them into managers and project developers. PAL has been working with universities in Singapore; with undergraduate and postgraduate classes to help nurture the next generation of potential employees. “We have seen a lack of logistically talented manpower coming through the education system in recent years and it has been affecting us. We are working alongside the universities to help single out potential employees and it has already paid dividends for us. Those new candidates are going through in-house training with us and
We are working alongside the universities to help single out potential employees and it has already paid dividends for us. Those new candidates are going through in-house training with us and working towards becoming integral parts of the company”
working towards becoming integral parts of the company,” cites Bischoff. The in-house training offered by Pan Asia Logistics does not just cover the ins and outs of the job role, but also provides education on the history and culture of the company. The new employees are given a solid education on the brand and how the culture requires employees to be flexible and adaptable in their approach to work on projects. With the company growing at a healthy rate, marketing in new countries has been a new challenge for the company as campaigns that work in Asia may not be as well received in Germany or Italy, as Bischoff explains: “We have a dedicated marketing team who identify the best methods for growing the brand in the countries in which we operate. The techniques we employ in Asia do not always translate to the European market so we look at new approaches to help strengthen brand activities abroad.”
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Shifts and Trends
We are constantly adapting to meet the growing and changing demands of our clients. Currently, we are strengthening our core business of air and ocean freight as well as contract logistics services while building up our warehouse capacities”
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The shift in trade volumes and trade flow continues to be dynamic due to the growing importance of emerging markets, which have gradually been leading to a restructure of the markets. Asia is spearheading the growth of the world economy and will continue to be the locomotive. Changing demand for manufacturing and manufacturing locations and shifting closer to higher concentration of customers will alter the geographic spread of logistics hubs. “The opportunities to grow business in Asia are enormous. Asia has a youth factor, approximately 60% of the world’s young population lives in Asia and they cause a change in consumer behaviour,” states Bischoff, who adds that “Asia’s middle class is exploding and boasts impressive spending power.”
Productivity and Innovation
Pan Asia Logistics will continue to reinforce its market presence. To stay ahead of the market changes, PAL has also embarked on joint ventures and started a couple of new divisions to cover lucrative niche businesses such as fashion logistics, life science and time critical solutions. Pan Asia Logistics is the first user of the Scope System in Asia and was the pilot customer for Riege Software International. “We are constantly adapting to meet the growing and changing demands of our clients. Currently, we are strengthening our core business of air and ocean freight as well as contract logistics services while building up our warehouse capacities. We have heavily invested in warehouse automation technology. Our processes in operations and administration have been re-designed and optimised and we have rolled out an operations and freight management system in all our countries recently,” explains Bischoff.
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Pan asia logistics have activated a substantial amount of measures and are looking for innovative ways to tap into the current market developments and map out their strategic direction over the next 5 years. “We set up a think tank recently and started developing mission specific logistics products and services. the logistics industry needs disruption, to prepare for the next generation of logistics solutions, because the next generation of customers and employees are born into the digital age,” claims Bischoff.
investing in employees and the Community worker health and happiness is something that is always a top priority for Pan asia logistics. Ergonomic furniture, yoga classes, Pilates, social trips and stress and wellness management are just some of the things on offer to all employees. “Staff health is very
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important to us. if people are unhappy or feel the effects of stress, their productivity will be down and they will no longer enjoy their jobs,” remarks Bischoff. It is not just the employees who benefit from the company funding. Pan asia logistics has been investing in a scholarship program over the last two years. The programme supports and sponsors students from disadvantaged backgrounds in Singapore. The course allows several candidates who would have otherwise been unable to study. This scheme has already produced several success stories.
Secrets for logistical Success
Bischoff was keen to highlight that PAL’s success is not so much a secret, but a result of standing strong in the face of challenge: “one of the driving factors that has seen us conquering even the
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harshest challenges is the unyielding spirit found in our staff. From the senior managers to the warehouse operators, this unwavering spirit is part of our DNA. We fully empower our employees and involve them in decision making on all levels of the organisation.” Over 95% of the managers that Pal originally started out with remain employed by the company, thanks in part to the high integrity workplace and business environment Pan Asia Logistics offer to their employees. logistics is a people-driven industry, where clients make their decision on who to use based on many factors. With PAL’s employees and management not only identifying but implementing the company’s mantra of never give up until you succeed, staff and facilities are strategically placed to help clients choose Pan asia logistics as their preferred partner in asia.
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ENQUIRIES Tel (UK): +44 (0) 1603 559 151 ben.weaver@outlookpublishing.com
suBscRiPtioNs Tel (UK): +44 (0) 1603 559 152 matthew.bone@outlookpublishing.com
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PAn ASiA logiSTiCS SingAPoRe PTe lTD Pan asia logistics centre 21 changi North way Singapore 498774 tel: +65-6846 0660 Fax: +65-6748 0660 Email: info.singapore@panalogs.com
www.panalogs.com